Kenyan court suspends $736M Adani power deal

Kenya’s High Court has temporarily halted a $736 million agreement between Kenya’s state utility and India’s Adani Energy Solutions, which was set to build and manage power infrastructure, including key transmission lines.

Signed earlier in October, the public-private partnership between the Kenya Electrical Transmission Company (KETRACO) and Adani Energy Solutions was promoted by Kenya’s energy ministry as a solution to reduce power outages and support economic growth.

The court’s suspension blocks the government from proceeding with the 30-year deal until it rules on a case filed by the Law Society of Kenya, which has labeled the agreement “a constitutional sham” and criticized it for a lack of transparency.

The Law Society argues that KETRACO and Adani Energy Solutions failed to meet public participation standards, a requirement under Kenya’s 2021 Public Private Partnerships Act that mandates public involvement in private sector-led infrastructure projects. The energy ministry, however, maintains that the deal underwent a competitive bidding process.

Adani Group, founded by Indian billionaire Gautam Adani, has faced growing opposition in Kenya. The Law Society of Kenya and the Kenya Human Rights Commission have also filed a case against Adani’s proposed 30-year lease of Kenya’s main airport, claiming it poses financial risks, threatens jobs, and lacks value for money.

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